Bitcoin Braces for Potential Dip Despite Investor Surge: Key Levels to Watch

Published by

Mustafa Mulla

June 6, 2024

Bitcoin traders are feeling the heat as top chart analyst Ali Martinez warns of a possible short-term stumble in the cryptocurrency’s journey. Despite a slight dip of 0.5% in the last 24 hours, with Bitcoin settling at $70,834.5, Martinez’s cautionary note has stirred the market.

Read on.

Chart Analysis Raises Red Flag

Ali Martinez, a respected figure in chart analysis, has raised concerns about Bitcoin’s immediate future. Pointing to the TD Sequential indicator’s sell signal on the four-hour chart, Martinez suggests that BTC might face a brief correction before bouncing back.

Record Inflows into Bitcoin ETFs

Despite this warning, the U.S. spot Bitcoin exchange-traded funds (ETFs) have witnessed substantial inflows. On June 5, these ETFs recorded their third-highest daily inflow ever, with a total net intake exceeding $488 million. This marked the 17th consecutive day of net inflows, showcasing continued investor interest in Bitcoin.

Fidelity’s Wise Origin Bitcoin Fund took the lead, attracting a staggering $221 million, closely followed by BlackRock’s iShares Bitcoin Trust with $155 million. Notably, Grayscale’s ETF GBTC reported a single-day inflow of $14.5802 million, adding to the bullish sentiment.

Market Analysis

According to Martinez’s analysis, the critical support level for Bitcoin currently rests at $68,500. If Bitcoin maintains this level, it could pave the way for further upward movement.

However, Martinez notes that Bitcoin recently broke out of a symmetrical triangle at $69,000, signaling a bullish trend. The pivot point for Bitcoin is identified at $68,500, with immediate resistance anticipated at $71,200.

Despite positive signs, the Relative Strength Index (RSI) hovering at 66.95 suggests overbought conditions, hinting at a potential price correction in the short term.

Bitcoin Dominance Continues

With Bitcoin’s dominance standing firm at 54.53%, institutional and retail investors continue to show unwavering confidence. This strength is particularly notable against the backdrop of recent approvals for spot Ethereum ETFs, underscoring Bitcoin’s enduring appeal.

Along with the recent surge in inflows follows the recent approval and listing of Bitcoin-regulated funds in Australia, the U.K., and Thailand.

Also Check Out : XRP ETF Would Make A Lot of Sense: Says Ripple President Monica At Consensus 2024

Will Bitcoin maintain its dominance in the crypto market, or will Ethereum’s recent ETF approval change the game?

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.